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Treasury head Rachel Reeves has stated she is planning "targeted action to tackle household expense issues" in the upcoming Budget.

During an interview with the BBC, she stated that reducing price rises is a collective task of both the administration and the central bank.

The UK's inflation rate is forecast to be the highest among the Group of Seven industrialized countries this year and the following year.

Possible Utility Bill Interventions

Reports indicate the government could intervene to reduce utility costs, for instance by cutting the present 5% level of value-added tax charged on energy.

A further possibility is to cut some of the government charges currently included in bills.

Fiscal Constraints and Expert Expectations

The government will receive the next draft from the independent fiscal watchdog, the Office for Budget Responsibility, on the start of the week, which will clarify how much space there is for such measures.

The view from most analysts is that the Chancellor will have to introduce tax increases or expenditure reductions in order to meet her voluntary fiscal targets.

Earlier on the same day, analysis suggested there was a £22 billion deficit for the Treasury chief to address, which is at the lower end of projections.

"There's a collective responsibility between the Bank of England and the administration to bear down further on some of the causes of inflation," the Chancellor told the BBC in the US capital, at the annual meetings of the IMF and World Bank.

Tax Pledges and Global Concerns

While much of the focus has been on likely tax increases, the chancellor said the most recent figures from the fiscal watchdog had not changed her pledge to election pledges not to increase rates on income tax, VAT or National Insurance.

She blamed an "unpredictable global environment" with rising geopolitical and commercial tensions for the Budget revenue measures, likely to be focused on those "wealthiest."

International Trade Tensions

Referring to concerns about the United Kingdom's economic relations with China she said: "The UK's security interests always come first."

Recent announcement by China to strengthen export controls on rare earths and other resources that are crucial for advanced tech production led US President the US President to suggest an extra 100% import tax on goods from the Asian country, raising the risk of an full-scale commercial conflict between the two economic giants.

The American finance chief called the Chinese move "commercial pressure" and "a international production control attempt."

Asked about considering the US offer to join its battle with China, Reeves said she was "deeply worried" by Chinese measures and urged the Beijing authorities "to avoid restrictions and restrict access."

She said the action was "damaging for the world economy and causes further challenges."

"In my view there are areas where we should address China, but there are also valuable chances to trade with Chinese markets, including financial services and other sectors of the economy. We've got to get that equilibrium appropriate."

The Treasury chief also affirmed she was collaborating with other major economies "regarding our own critical minerals strategy, so that we are less reliant."

Health Service Medicine Costs and Investment

The Chancellor also recognized that the cost the NHS spends on medicines could increase as a result of current talks with the US government and its drugs companies, in return for lower tariffs and investment.

Some of the world's largest pharmaceutical manufacturers have said lately that they are either halting or scrapping investments in the UK, with several blaming the modest returns they are receiving.

Recently, the government science advisor said the price the NHS spends on medicines would need to go up to prevent companies and pharmaceutical investment leaving the United Kingdom.

Reeves informed the BBC: "We have seen due to the payment system, that drug testing, new drugs have not been available in the United Kingdom in the way that they are in other continental states."

"The objective is to make sure that patients receiving treatment from the National Health Service are able to obtain the top essential medicines in the world. And so we are looking at these issues, and... looking to attract increased capital into the UK."